Spiegel Group CFO Cannataro Resigns

Published 7:00 pm, Tuesday, February 4, 2003

The chief financial officer of Spiegel Group has resigned to take a similar position at another company, the troubled retailer announced Wednesday.

James Cannataro's resignation comes one day after an auditor of the company expressed substantial doubt about Spiegel's future after the retailer failed to comply with some of its debt agreements.

The reason for Cannataro's resignation was not given. Spiegel CEO Martin Zaepfel, in a statement, thanked him for "his many contributions during his 18 years of service with The Spiegel Group."

Telephone calls seeking further comment were not immediately returned.

In a letter to the company's board of directors, auditor KPMG LLP said Spiegel was not in compliance with certain debt agreements and that "substantially all of the company's debt is currently due and payable." KPMG also said Spiegel has been unable to negotiate amended agreements with its lenders.

The letter was among documents filed Tuesday with the Securities Exchange Commission. Spiegel said in the SEC filings that it is working with lenders.

The company, based in Downers Grove, sells clothing and domestic products. Spiegel businesses include Eddie Bauer, Newport News, Spiegel Catalog and First Consumers National Bank.